Cooperative Pricing and Ordering Policies in a Single-Manufacturer-Single-Retailer Supply Chain

2단계 공급사슬의 협력적 가격 및 재고 정책

  • Kim, Jeong-Gyu (Division of Mechanical and Industrial Engineering POSTECH) ;
  • Hong, Yu-Sin (Division of Mechanical and Industrial Engineering POSTECH) ;
  • Park, Jun-Hyeok (Division of Mechanical and Industrial Engineering POSTECH) ;
  • Go, Sang-Jin (Division of Mechanical and Industrial Engineering POSTECH)
  • Published : 2006.11.17

Abstract

We investigate pricing and ordering policies in a supply chain consisting of a single manufacturer and a single retailer. Demand at the retailer depends on the retail price and is assumed to be constant over time for the fixed price. The retailer places orders according to an EOQ policy and the manufacturer produces the order quantity according to a lot-for-lot policy. The retailer and the manufacturer cooperates each other to maximize the average profit for the supply chain. A mathematical model is presented and a solution procedure is developed to determine the optimal retail price and order quantity.

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